Viva Air Signs MoU For 50 A320 Family Aircraft

Peruvian ultra-low-cost carrier (ULCC) airline group, Viva Air, announced that it had signed a memorandum of understanding (MoU) for 50 A320 family aircraft (both ceo and neo) with Airbus at the Paris Air Show Tuesday. The MoU consists of 35 A320neo jets and 15 A320ceo planes, valuing the deal at $5 billion at current list prices.

The planes will be used by the group’s member airlines VivaColombia and Viva Air Peru. Viva Colombia is based in Bogota and Medellin and was launched in 2012 as Colombia’s first major LCC carrier.

“Our customers are at the forefront of everything we do. This new fleet will allow us to continue leading the development of the low-cost model throughout Latin America. We will be able to offer even lower fares thanks to further cost savings that these new aircraft will deliver,” said William Shaw, CEO and Founder of VivaColombia, a Viva Air company.

Viva Air Peru is the fifth ULCC to be launched by Irelandia Aviation, which helped develop Ryanair, Tigerair, VivaAerobus, VivaColombia, and Allegiant Air. The new startup was announced in early November 2016 and received a permit from the Peruvian Ministry of Transport and Communications to start service on January 19, 2017. The carrier’s first flight was on May 9, 2017, from the Peruvian capital of Lima to Iquitos.

“Airbus is proud that Irelandia is once again entrusting the A320 Family with Viva Air’s growth and modernization strategy,” said John Leahy, Airbus Chief Operating Officer, Customers. “Viva Air will be able to rely on the unmatched productivity and fuel efficiency of the A320neo to renew its growing fleet and expand its network in Latin America.”

Viva Air Peru already has a fleet of two Airbus A320 aircraft, configured with 180 passengers in an all-economy class configuration. Its initial network consists of 10 cities in Peru (nine smaller cities plus the hub in Lima), though the carrier soon plans to start international operations.

The most recent destination to join the network is Cuzco’s Alejandro Velasco Astete International Airport, which serves as the de-facto gateway to the tourist site of Machu Pichu.

Lima’s Jorge Chavez International Airport is a booming hub for Western South America, handling 19.3 million passengers in 2016. That represented 9.7% growth year-over-year versus 2015, and essentially a quadrupling of passenger traffic in the 11 years since 2005 (5.1 million passengers).

The problem for Viva Air Peru is that Lima is also a fiercely contested hub airport. By far, the two largest airline groups on the continent, LATAM and Avianca both have major hubs in Lima, and on the domestic front, smaller carriers like Star Peru (11 planes), Peruvian Airlines (9 planes), and LC Peru (9 planes) are all competing on the same initial routes as Viva Air Peru.

Moreover, Lima is capacity constrained as a single-runway airport with limited terminal space, which doesn’t provide a lot of room for Viva Air Peru to grow operations.

Latin America (other than Brazil, Colombia, and Mexico and Mexico) is also a notoriously tough market for low-cost carriers to operate in. Because it is composed of numerous small countries, many of which have their own national flag or trans-national carrier (mostly LATAM or Avianca in Viva Air Peru’s neck of the woods), getting international route rights is difficult for low-cost carriers.

The only large low-cost carrier in the region is Chile’s Sky Airline, which has just 15 aircraft in its fleet. Viva Air Peru wants to grow to two times that size – and we are skeptical of its ambitions.

VivaColombia already has 11 Airbus A320ceo family aircraft in its fleet, once again configured with 180 seats. It also had 3 outstanding A320ceo orders prior to this new commitment.

Unlike Viva Air Peru, VivaColombia can draw on a massive domestic market to grow its operations in Colombia, which will also help it generate feed and demand. Its strategy also centers on a hub at Medellin, Colombia’s second-largest city in addition to operations from the capital Bogota.

That diversification helps take VivaColombia out of direct competition with Avianca, and we expect the carrier to focus on developing operations further at other secondary hubs like Barranquilla and Bucaramanga.

At Bogota, VivaColombia will have to face competition from continental powerhouses LATAM and especially Avianca. It also must beat back government-owned domestic operator Satena, and Wingo, the Colombian low-cost wing of Copa Airlines (probably the third most important airline in Latin America).

But at Bogota, with 2016 passenger traffic of 35.8 million passengers and fewer restrictions on growth than Lima, the aspiration to more than triple VivaColombia’s existing fleet is more credible.

VivaColombia will still face the rough dynamics of getting international traffic rights within Latin America, though it does already have services to Quito, Panama City, and Lima. Most importantly, it is within narrowbody range of much of the United States, which boosts the number of available destinations.

Still, other than Gol and Azul in Brazil, no South American LCC has actually been able to achieve real scale. Viva Air Group hopes to break that trend.

INDIA: Jetstar Denies It Is World’s Worst Airline

LOW-cost carrier Jetstar has hit back at claims it is the worst airline in the world and said the findings research by consumer watchdog Choice had no credibility.

Data compiled by 11 consumer groups globally including Choice was released earlier today after 11,000 passengers who travelled in the past year gave feedback and scored the performance of 73 airlines.

The findings showed Qantas was ranked as the best of the national carriers (ranking 36), ahead of rival airline Virgin Australia (51) and Jetstar came in last (73).

Jetstar has come dead last in a new survey of more than 100 airlines.

A new global study has found Jetstar to be the worst performing overall according to more than 11,000 people who took part.

But the budget airline has hit back, saying the survey lacks "veracity".

Jetstar spokesman Luke Enright criticised how the research was conducted and said it was not a fair indicator of all airlines.

He said the data size of Jetstar passengers which included more than 100 respondents of the 11,000 overall was “around half the number of people we carry on one flight and a lot less than 34 million customers who flew with us last year.”

They also called it an international survey but only surveyed people from eight countries, he said.

Emirates took the crown as the best airline in the world.

Tigerair was not included in the survey because the sample size of passengers was too small.

But Choice spokesman Tom Godfrey stood by the research and said it’s unsurprising Jetstar is disappointed in their poor performance but instead of trying to rubbish the survey, they should work on cleaning up their act.

People are sick of poor treatment, particularly when flights are delayed or cancelled.

Jetstar said they continued to do a lot of work behind the scenes on areas where we can improve, particularly on flight punctuality.

Customers rated airlines on a range of criteria including punctuality, checking in, boarding, treatment by staff, comfort on-board, meals, safety and value for money.

In comparison Australia-based airline Qantas ranked the 36th best airline in the world and Emirates came out on top.

The study was conducted by Choice, in association with watchdogs from around the world, and found more than a third of passengers who flew with Jetstar said they experienced disruptions from flight cancellation and waiting times of an average of at least four hours after scheduled departure times, the Daily Mail reported.

Jetstar only received one star out of five for overall satisfaction. The airline was rated 4.51 out of 10 for comfort and its website scored 4.81 out of 10.

Despite the findings, Jetstar say they question the results.

"There are a lot of holes in this latest survey, including leaving out our main competitor Tiger because they didn't collect enough responses, so the veracity of the report is questionable," a spokesperson said.

Air New Zealand ranked 26th in the world - well ahead of the two Australia-based airlines.

Here are the top five airlines according to the survey:

1. Emirates based out of the United Arab Emirates 8.29

2. Avianca based out of Columbia 8.17

3. Qatar Airways based out of Qatar 8.15

4. Luxair based out of Luxembourg 8.1

5. Singapore Airlines based out of Singapore 8.1

Ethiopian Airlines And Singapore Airlines Codeshare

Star Alliance members, Ethiopian Airlines and Singapore Airlines will expand their existing codeshare agreement as of 01st of June 2017, offering customers travelling between Africa and Asia seamless connectivity options.

Ethiopian Airlines’ daily non-stop services to Singapore from Addis Ababa, due to be launched in June 2017, will be covered by the expanded codeshare agreement.

Under the new agreement, Ethiopian Airlines customers will be able to access multiple destinations in Australia, China, Japan, Malaysia, New Zealand, Thailand and Vietnam across Singapore Airlines’ wide network.

In turn, Singapore Airlines customers will enjoy access to Ethiopian Airlines’ vast intra-African network including countries like Botswana, Burkina Faso, Chad, Cote D’Ivoire, Kenya, Nigeria, Mozambique, The Republic of Congo, Rwanda, Seychelles, South Africa, Tanzania and Zimbabwe.

Mr. Girma Shiferaw, Acting Vice President, Strategic Planning and Alliances, remarked: 'I wish to thank Singapore Airlines for the successful completion of this vital agreement.

The two airlines will synergize their respective networks in Asia and Africa to offer customers the best connectivity options with one ticket and one single check-in at the first boarding airport. It will also play a critical role in enhancing investment, trade and tourism ties between a rising Africa, and a highly developed, innovative, and business-friendly Singapore'.

Singapore Airlines Senior Vice President Marketing Planning, Mr Tan Kai Ping, said, 'We are delighted with our expanded codeshare operations with Ethiopian Airlines. This significant expansion of our important partnership is in line with our ongoing effort to continuously expand our network reach and to offer customers more travel options and convenience when travelling between Africa, Asia and Southwest Pacific'.

The airlines first began code sharing on each other’s flights to and from Dubai in 2011. The expanded codeshare flights are subject to regulatory approvals and will be progressively made available for sale across various sales channels.

Ethiopian Airlines operates one of the youngest fleets on the African continent with an average aircraft age of less than five years, serving more than 90 international destinations across five continents with over 240 daily departures.

Singapore Airlines operates a modern passenger aircraft fleet of more than 100 aircraft and together with wholly owned passenger airline subsidiaries SilkAir, Scoot and Tigerair, the SIA Group’s combined network covers more than 130 destinations around the world.

Ethiopian Airlines flies three times a day to Entebbe and also operates multiple flights each day to Kigali, Nairobi, Dar es Salaam while serving the tourist destinations of Kilimanjaro, Zanzibar and Mombasa too.

SINGAPORE: Airlines To Cash On Higher Tourist Arrivals

Singapore not only welcomed a record number of visitors. More significantly, those who came spent more.

Tourism receipts grew by almost 14 per cent year-on-year to $24.8 billion, far outstripping the 7.7 per cent jump in the number of visitors, which hit 16.4 million.

Preliminary data collated by the Singapore Tourism Board (STB) put Indonesia, which accounted for 17.7 per cent of total arrivals, and China, at 17.5 per cent, neck-and-neck in the race for the top market spot.

Malaysia and India took third and fourth positions, respectively.

The good showing did bode well for the economy, specifically the tourism-related sectors, including retail, entertainment and food and beverage.

Hotels and other accommodation providers also benefited.

For the aviation sector, the knock-on effect was more patchy.

The positive impact was obvious for Changi Airport. More visitors - the bulk of whom would have come by air - meant more business for the airport, which also handled a record number of passengers last year.

There is a strong correlation between STB's visitor arrival numbers and Changi's passenger movements, particularly for key markets such as China, Indonesia and India.

Among Changi's top 10 markets last year, China saw the fastest growth at 15 per cent.

The airport has been actively growing the Chinese market by establishing new city links in China and welcoming new Chinese airlines to the airport - an added boost to the tourism sector here, said airport spokesman Ivan Tan.

Spending at airport shops and restaurants also increased, with total sales hitting a record high of $2.3 billion last year, 5 per cent higher than in 2015.

Travellers from China were the biggest spenders, accounting for about 30 per cent of the airport's retail market.

Other top spenders were from Indonesia, India and Australia.

For Changi, which collects rent from tenants as well as a percentage of sales, increasing revenue from commercial activities is key to keeping the airport competitive.

This is because part of the takings are used to subsidise aircraft parking and landing, as well as other aeronautical charges.

With Jewel Changi Airport due to open in early 2019, commercial takings should get another shot in the arm.

The multi-storey complex being built in front of Terminal 1 will offer mainly retail and dining options.

While Changi benefits from the increase in overall visitor arrivals, it is also important for the airport to grow its transit traffic to boost Singapore's status as an air hub.

Currently, stopover traffic makes up about a third of the airport's total passenger traffic.

As the airport continues to strengthen its connectivity to secondary cities in China, Indonesia and India, air travel to and from these key markets should remain healthy this year.

With much of the growth in visitor numbers coming from Asian markets, and especially second- and third-tier cities in China and India, budget airlines and full-service carriers that operate mainly regional flights are the key beneficiaries of the upswing.

For others, such as Singapore Airlines, the key is to grow its home base and work closely with its low-cost subsidiaries, such as Tigerair and Scoot, and regional arm SilkAir, to not only bring more people to Singapore, but also from here to other destinations within the group's network.

Budget carriers, such as Tigerair, Scoot, Jetstar and AirAsia, play a key role in boosting Singapore's visitor numbers, with a growing number of flights to regional destinations.

AirAsia's Singapore chief executive Logan Velaitham said: "Flights on our key trunk routes, like Kuala Lumpur-Singapore, are consistently operating at loads of 95 per cent, while services to second-tier cities in the region are achieving average loads of about 77 per cent."

While fuel and other operating costs such as salaries also factor into the bottom line, volumes are critical for budget carriers that earn not just from the fares they charge, but also add-ons, such as food and priority seating fees.

For airlines and ground handlers that do passenger and baggage check-in, and firms that repair and maintain planes, a rise in passenger numbers and flights is welcome, but competition will keep a lid on profits.

As the demand for intra-Asian air travel continues to grow - and with ongoing efforts to remove travel restrictions, for example, the push for a single visa for all Asean countries - tourism numbers will rise.

STB and Changi Airport will no doubt work closely with key players, in both the tourism and aviation sectors, to capture a big chunk of the traffic.

THAILAND: Passengers Stranded After Tigerair Enters Dispute With Airport Authorities

Hundreds of passengers have been left stranded as a licensing dispute between budget airline Tigerair and Indonesia grounded flights to and from Bali until at least Friday morning.

More than 1700 travellers have been affected with around a dozen flights cancelled since Wednesday.

"Tigerair Australia sincerely apologises for the inconvenience caused by this decision and we are working to resume flights as soon as possible," the airline said in a statement.

Bali is one of the most popular destination for Australians. More than one million visit Indonesia each year.

At least 350 passengers are stranded in Bali awaiting flights home.

Virgin Australia, which owns Tigerair, was scheduled to operate two flights from Bali to bring as many affected customers as possible, according to a statement from Tigerair.

The issue arose after Indonesian government asked the budget airline to comply with new licensing conditions on Tuesday.

Rob Sharp, Tigerair's chief executive officer, said the airline had temporary approval under charter flight arrangement from Indonesia to operate between Australian cities and Bali until March 25, 2017, which has been ongoing for the past eight months.

"This involves selling tickets in Australia between Australia and Bali. Under the existing agreement, we are not able to sell tickets in Indonesia and we are fully compliant with this," he said.

The director-general of Air Transport in Indonesia had accused the airline of breaching its agreement and selling tickets in Indonesia.

Some of the travelers took to social media to blast the airline.

On her Facebook page, Melbourne resident Megan Deal said other airlines were either fully booked or charging ridiculous amounts.

"Our long-awaited family holiday has been ruined and I have to tell my devastated kids in the morning we are no longer going to Bali today!!" she said.

"Needless to say we will NEVER fly with your company again and will inform others not to do so either!!"

Airbus Celebrates Delivery Of 10,000th Plane

Airbus today celebrated the delivery of its 10,000th aircraft - an A350-900 for Singapore Airlines. The milestone event was marked by a special ceremony in Toulouse hosted by Airbus Group CEO Tom Enders and attended by Goh Choon Phong, CEO of Singapore Airlines.

The aircraft delivered today is the sixth A350-900 for Singapore Airlines, out of a total order for 67. Featuring a special “10,000th Airbus” logo, the aircraft will be used to launch the airline’s new non-stop services between Singapore and San Francisco later this month.

The 10,000th Airbus delivery comes as the manufacturer achieves its highest level of production ever and is on track to deliver at least 650 aircraft this year from its extensive product line. These range from 100 to over 600 seats and efficiently meet every airline requirement, from high frequency short haul operations to the world’s longest intercontinental flights.

“Since our earliest days innovation has been at the heart of everything we do at Airbus,” said Tom Enders, Airbus Group CEO. “This has seen us develop what is today the world’s most modern and comprehensive aircraft family. And with a strong emphasis on R&T, continuous innovation and product improvement, we will ensure that we remain ahead of the curve, delivering airlines the best our industry has to offer.”

“We are especially proud to celebrate this milestone with Singapore Airlines – one of our longest standing customers and a true partner. Today, the SIA Group operates aircraft from across our complete product line and with the highest levels of technical excellence. There is no better endorsement for our products and we thank the entire SIA Group for its ongoing confidence, partnership and support.”

“Singapore Airlines is honoured to be receiving the 10,000th aircraft that Airbus has delivered. Airbus aircraft have contributed greatly to Singapore Airlines’ successes over the decades, and we are proud to be sharing this important milestone with our longstanding and trusted partner,” said Goh Choon Phong, CEO of Singapore Airlines. “Today’s delivery shows just how far Airbus has come over the decades. On behalf of the staff and management of Singapore Airlines, I would like to congratulate Airbus for reaching this incredible milestone.”

Singapore Airlines placed its first order with Airbus in 1979 and over the years the carrier and its subsidiaries have ordered every successive model produced by the manufacturer. Today the mainline carrier operates the A330, A350 XWB and A380, while its regional subsidiaries Silkair and Tigerair fly aircraft from the single aisle A320 Family.

Airbus delivered its first aircraft, an A300B2, to Air France on 10 May 1974. Initially working exclusively in the widebody sector with the A300 and A310, the manufacturer moved into the single aisle market in the mid-1980s with the launch of the best-selling A320. Setting new standards in aircraft design, technologies introduced on the A320 were subsequently incorporated on the A330 and A340 in the early 1990s, marking the first time that single aisle and widebody aircraft benefitted from similar operational characteristics.

This high level of design commonality is unique to Airbus aircraft types and has been retained across the company’s product line ever since, including on the double deck A380 and the all-new long range A350 XWB which entered service last year.

Through the company’s process of continuous product improvement, the Airbus product line has been regularly enhanced over the years with each subsequent development bringing significant benefits in terms of fuel efficiency, operational reliability and passenger comfort. In recent years this has recently seen the company invest in the A320neo Family, which entered commercial service this year, and the A330neo Family, currently in development and with first delivery planned for the end of 2017.

Also under advanced stage of development is the second version of the all-new A350 XWB, the A350-1000, which is set for first flight before year end and first delivery in the second half of 2017. Together, the members of the A350 XWB Family are redefining long haul travel in the larger twin aisle market, consuming 25 per cent less fuel and bringing new levels of passenger comfort, with more personal space in all classes.

The current Airbus product line comprises a total of 16 models spread across four aircraft Families – the A320, A330, A350 XWB and A380.

Airbus has recorded over 16,700 orders for its various models and its aircraft are flying today with more than 400 airlines worldwide. The company’s backlog of 6,700 aircraft on order for future delivery is the highest ever recorded by any aircraft manufacturer and represents some 10 years of full production at current rates.

INDIA: IndiGo Will Not Loose 11 Jets Of Tigerair, Says Indigo CEO

IndiGo owner, InterGlobe Aviation , fell 4 percent intraday on Wednesday as media reports suggested that Tigerair may take back its 11 jets subleased to IndiGo.

The Singapore-based airline company said it will grow its capacity with the returning aircraft subleased to IndiGo.

In October 2014, Tigerair had subleased 12 of its surplus aircraft to IndiGo. Each aircraft was sub leased for three and four years. “With the lease of one of the 12 aircrafts expiring in 2018, only 11 of the aircraft will be returned to the group at the end of their respective sublease periods.

Following their return, seven of the 11 aircraft are expected to re-join the operating fleet, while the remaining four may be progressively re-introduced back to the service network within two years.,” Tigerair had previously stated in a company release.

However, IndiGo CEO Aditya Ghosh told CNBC-TV18 that Tigerair can’t take the aircrafts before end of contracted lease term. He added that the news development is ‘completely false’.

PHILIPPINES: Tigerair Philippines Rebrands As Cebgo

Tigerair Philippines, the wholly-owned subsidiary of the Cebu Pacific Air, Inc., was rebranded as Cebgo on Monday. The new logo of Cebgo uses Cebu Pacific's colours which is blue and green, to further reflect Cebgo's relationship with Cebu Pacific.

More than a year ago, Cebu Pacific spent over $15 million for acquiring Tigerair Philippines wholly. This includes Tigerair Singapore's 40% stake at Tigerair Philippines.

“The new Cebgo brand clearly identifies us as part of the CEB group, and streamlines our operations further. Cebgo will continue to leverage on CEB’s distribution channels and network, and work together to serve more guests,” Michael Ivan Shau, Cebgo President and Chief Executive Officer said.

Beginning this month, Cebgo will start acquiring Cebu Pacific's fun games on board their flights to over 16 destinations in the Philippines. According to the press release, Cebgo's cabin crew will now wear their new uniforms in the near future.

However, Cebgo's operations will remain at the Ninoy Aquino International Airport Terminal 4 and its current code, 'DG'. It will also continue flying to its destinations domestic and international - Bacolod, Butuan, Cagayan de Oro, Clark, Cebu, Davao, General Santos, Iloilo, Kalibo, Legazpi, Manila, Roxas, Puerto Princesa, Tacloban, Tagbilaran, and Hong Kong.

Cebgo carried 1.3 million domestic passengers in 2014, 34% higher compared to 970,000 passengers in 2013. Both Cebu Pacific and Tigerair Philippines flew 16.87 million passengers last year or 17.5% higher versus 14.35 million in 2013, Rappler stated.

According to the aviation think-thank, Centre for Aviation, Cebu Pacific's decision to acquire Cebgo, recently Tigerair, was successful as it turned Cebgo's profit into narrowing its financial losses. The airline has launched 10 new routes.

With the new name, it remains unclear if Cebgo will change its livery painted on its aircraft.

SINGAPORE: Death Of Passenger Forces Emergency Landing Of Tigerair Flight In Bangkok

It was a brilliant case of customer service when Singapore bound Tigerair Flight TR2177 made an emergency landing on Suvarnabhumi International Airport soon as it learnt the death of a passenger onboard.

The plane had taken off from Thailand’s Chiang Mai when the 58 year old passenger collapsed on board. He was travelling with his family. The crew members immediately took charge of the situation and diverted to Bangkok.

It was later confirmed by the family members that the passenger was suffering from chronic illness. Hs body was taken to the Police General Hospital for an autopsy.

The airline continued with its scheduled flight from Bangkok and landed safely in Singapore with the rest of the passengers.

SINGAPORE: Singapore Airlines Announces Tigerair Takeover Bid

SIA currently owns 55.8 per cent of Tigerair and the “voluntary conditional general offer” is for the shares it does not already own.

Singapore Airlines (SIA) on Friday announced a full takeover bid for its struggling budget carrier subsidiary Tigerair and vowed to redevelop it as an integral part of the group’s portfolio.

SIA currently owns 55.8 per cent of Tigerair and the “voluntary conditional general offer” is for the shares it does not already own valued at around 453 million Singapore dollars (Dh1.17 billion, $322 million).

SIA said it intends to delist the low-cost carrier from the stock market.

“SIA’s objective for the offer is to derive enhanced commercial and operational synergies through a full integration of Tiger Airways into the SIA Group,” the airline said in a statement.

“SIA believes the offer will benefit shareholders of both Tiger Airways and SIA.”

The airline is offering Tigerair shareholders a price of S$0.41 per share in cash and an option to subscribe for SIA shares at S$11.1043.

SIA shares closed at S$11.15 apiece on Thursday before the carrier announced that its second quarter net profit more than doubled.

Tigerair shares closed at S$0.31 on Thursday, meaning SIA’s offer price carries a 32 per cent premium over that.

Both companies called for a trading halt Friday pending the announcement.

SIA said its offer will be funded from its “internal cash resources”.

The airline on Thursday said its net profit in the three months to September soared 135 per cent to S$213.6 million from the previous year, boosted by higher dividends from long-term investments and the absence of share losses from associated companies after it classified Tigerair as a subsidiary.

Tigerair went public five years ago, with a maximum initial offer price of S$1.65, but the airline was hobbled by a string of losses as competition in the Southeast Asian low cost carrier market intensified.

A strategy to expand the Tigerair brand to Australia, Indonesia and the Philippines failed.

SIA, which is also facing tough challenges from Middle Eastern carriers and budget airlines, already has in its stable Scoot, a medium-haul budget carrier, and full-fare SilkAir, which serves leisure destinations in Asia.

In the three months to June this year, Tigerair reported a net loss of S$ $1.7 million, narrowing from a whopping S$65.2 million loss in the same quarter the year before.

“Tigerair has been doing terribly so it is only prudent on the part of SIA to consolidate the budget carrier into its stable of companies together with Scoot and SilkAir,” said Shukor Yusof, an analyst with Malaysia-based aviation research firm Endau Analytics.

“It would help to realign the balance sheet of Tigerair. But at the same time, it is not going to guarantee profitability for Tigerair in the near future,” he said.

Shukor said competition has intensified in Southeast Asia’s no-frills carrier market with players that are “better placed” for the challenge, including Malaysia’s AirAsia, Indonesia’s Lion Air and Cebu Pacific of the Philippines.

SIA needed Tigerair to complete its portfolio, he added, especially with Singapore building a new terminal to maintain the city-state’s edge as a regional air transport hub.